Business Analisys of Coca Cola Brand - Essay Example

Task Coca Cola Brand History of the Coca Cola Brand The Coca-Cola Company started as a beverage business company in 1886 selling the product at five cents a bottle. The initial escalation was unsurpassed and impressive, but more was characterized when the company established a more and powerful system of bottling. This made the brand rise to be the world’s most liked and known brand of today. The sale of Coca-Cola began in Vicksburg by a storeowner called Joseph Biedenharn who started bottling the product for sale in a common bottle termed Hutchinson. The storeowner accidentally sent a sample to Asa Candler who was the owner of the company who merely thanked him and did not implement this aspect. One of Candler’s nephews persisted for his use of the bottle but he ignored and only centered on the fountain proceeds. Two youthful attorneys from Tennessee trusted that they had the competence to build up a business around bottling the brand. They met with the director of the company who later authorized them to bottle the brand in roughly all the parts of the US. The brand now rose to one dollar a bottle. A third party who was a lawyer joined the duo, thus they further vended the bottle rights to confined wholesalers and entrepreneurs. Their endeavors were further heightened by the major a technological advancements that increased efficiency and quality of the product. With this breakthrough, nearly 500 bottling plants were functioning and small-scale businesses and families owned a majority of them. A number of the plants were only opened in the dry spells when the demand was escalated. Since the straight bottle was confusing to the public, an undersized group on behalf of the company asked the public to give ideas on how to improve the bottle so that it becomes unique to the Coca-Cola brand. With the technological advancements eminent in the global economy, those who sold the brand evolved into global chains. These customers merged for reason of tackling the increasing global market (Tung, 2001, 23). The company is an American beverage institution and manufacturer. It has its HQ in Atlanta Georgia and has Muhtar Kent as its present Director. The company also retails and promotes non-alcoholic juices and syrups. The company is best recognized for its pioneer Coca-Cola product invented by John Pemberton in Georgia. Asa Chandler established the modus operandi and brand of Coca-cola in 1889. It features in the NYSE, and is a component of DJIA and the Russell Index. 2. Organizational Design & Strategy The primary competences that provide the association its unsurpassed competitive merit are its powerful name of product and its system of distribution and bottling. Besides its marketing potentials and extensive collection of products, The Company has key competences that are tremendously complicated, if not impracticable to copy. The powerful Coca-Cola product name provides the company a large amount of bargaining influence and advantage. In 1999, Coca-Cola Company and PepsiCo were struggling to develop into merchants of juices for the Wendy’s cafe chain. Wendy’s chose to associate with The Coca-Cola Company albeit PepsiCo was presenting a large amount of money. The Coca-Cola brand name enjoys much domination in the market. The Coca-Cola brand has authority on customer preferences. When Company was endeavoring to initiate Diet Coke, they implemented some sightless taste experiments with customers. The customers favored a glass tagged Diet Coke over a glass tagged Tab by 12%, although the fluids in all the glasses were matching. Designing Organizational Structure: Authority &Control The Company presently recruits nearly 94,800 workers. According to a broad managerial graphical representation acquired from the firm’s website, the company has over 5 hierarchical stages at the corporate strategy. For instance, the director of the Canadian region is subordinate to the head the North American cluster. That head is subordinate to the CFO, who is under the General Counsel Office. The General Counsel further answers to the CEO. It is right to suppose that there are additional few stages in the pecking order at the local Category. Because of its giant organization, the business has encountered communication troubles. Among the troubles exposed through a study, was that the populace and the corporation lacked apparent objectives. Elevated hierarchies also start inspirational issues, which is the reason why the business is trying to get workers more occupied. The augmented worth of the corporation’s intranet will really augment the communique amid every category of workers, and permit upper administration to efficiently correspond to the frontage line workers. 3. Organizational Technology At present, production processes are the utmost supply of vagueness for the business. As formerly stated, corporation does not manufacture the final product. Suppliers and bottlers combine other elements (largely carbonated water) together with juices and concentrates and afterwards vend the yields. The Coca-Cola product name is put on the final product, despite the bottler. The corporation ought to keep demands on the bottlers to uphold elevated quality production, so as not to have pessimistic costs for The Coca-Cola Corporation. Decision Making The bulk of verdicts made by the Company are implemented by the employment of the incremental technique. Every year, the corporation would examine outcomes, and then create slight modifications in procedures to generate better outcomes in the subsequent year. The corporation does not instantly and quickly decide on creation of a new-fangled product, or alter operations. Radical changes are usually slow. Presently, realizing that the corporation was in fraught need for a radical change, Isdell wanted to discover why the corporation performance was waning. By beginning at the subordinate levels of the business to unearth solutions, the corporation was able to create some radical changes to the company’s traditions, how workers were compensated, and made endeavors to get workers more concerned. The transformations achieved by employing the formless judgment-making model formed much-improved outcomes for the corporation. One of the major faults in the business is that the panel of executives is accountable for a number of the non-programmed judgments prepared by the corporation. In the event that the Corporation was in quest for acquiring Quaker Oats, the transaction was roughly finalized, but then ended since the board perceived the price to be expensive. When the panel makes judgments, it denotes they need poise in the superior management of the corporation to make imperative verdicts. This is tricky for the corporation for the minority of reasons. Since associates of the panel have enough funds invested in corporation stock, they desire to reduce risk, and therefore, are tremendously prone to seize fewer opportunities. 4. The Organizations Marketing Strategy Coca Company is one of the leading companies dealing in soft drinks, in different continents of the universe. Some of its target markets include the continents include Africa, Europe and Africa. The company uses the 4Ps to reach its customers in the market. The company also encompasses three other factors that relate to target markets. The additional factors are physical evidence, process and people. This together with the other 4Ps of marketing make extended marketing mix commonly referred to as the 7Ps of marketing. The 7Ps of marketing applied by Coca Cola Company are illustrated below. Product In the context of marketing, products refer to attributes or benefits that satisfy consumer needs. In a broader term, products would be goods services, places, persons and even ideas. Coca Cola Company has many types of products for its customers. It has specialized in production of a variety of sodas that are sold all over the world. For instance, it manufactures Fanta, sprite and Coke sodas. Price Price is the value that the service providers attach to the product or service. It is expressed in terms of money, and it would be referred to as the exchange value for a product. Coca Cola Company sets prices on its soda products in various continents where it operates. Promotion The company carries out various marketing activities aimed at informing the customers of the services that the company provides. For instance, the company makes use of paid for TV services such Super sport. This and other media serve to educate, inform and persuade customers to use the company’s products. It also makes use of trade shows, trade promotions and contests. Place In this aspect, the company has licensed many intermediaries that serve to bring the product or service closer to people. Here, the company makes use of franchise and channel intermediaries in various parts of the target continents. These channels are licensed to provide similar services as those provided by the parent company. People This refers to all people who are directly and indirectly concerned with the consumption of the product. It includes employees of the firm and customers who consume the products and services of the company. Coca Cola Company employs qualified staff who would be required to provide products and services to customers. The company also has a department that is concerned with handling customer issues such as complaints and suggestions. This integration leads to achievement of company objectives. Customers feel as being part of the company and this enhances product and service consumption (Kumar, 49, 2010). Physical evidence In this aspect, Coca Cola Company encompasses various packages that it uses in packing its products. Various bottles have been designed for various soda and other soft drink products of the company. Most of these packages with the exception of cans are clear. This ensures that the product is visible to the consumers even while still packed. This has also contributed to display aspects that would be classified under marketing activities. Process This involves the way various sodas are provided to customers in the market. The company sells its products to retailers and whole sellers on credit. On the other hand, the consumers pay for the products in outlets such as supermarkets. They can consume these products immediately after buying them. 5. The organization’s approach to Human Resource Management Staff recruitment The company recruits its staff year by conducting interviews. This ensures that qualified candidates are picked for product production. In doing so, qualified people are recruited, and this would lead to the provision of services in a professional manner. This will attract customers and encourage the use of the company’s products and services. Staff rewards In appreciating efforts of its customers, the company organizes various award giving functions every year. The best performer in every continent is awarded by the parent company. This serves to motivate the work force in these branches. The management is examined to determine the performance of the branches and awarding is based on this examination. Training and Development Coca Cola Company organizes various workshops, trainings and seminars throughout the year for its employees. In such functions, various stakeholders from different countries are invited. These functions serve to educate mangers and personnel on new ideas and ways of providing services. Information on product development is also provided in these functions. All activities in this aspect are aimed at innovating new products that would satisfy consumer needs. 6. The organization’s approach to supply chain management. In particular: According to the Coca-Cola Company, system is: they do the production of the concentrates where as the bottling associates do the manufacturing, packaging and distribution of the eventual products. The materials used comprise of sugar, citrus, flavors and coffee. The purveyors are the stake holders involved in providing the ingredients to use with the concentrate syrups. The company has developed the strategy of deploying vending machines across all target population. This machine links the supply chain directly from the company to consumers, cutting off middle-men in the business. Coke company run three basic delivery mechanisms in its business structure. First, the mass delivery targeted to large shopping malls and supermarkets. Secondly, smaller deliveries made to relatively smaller supermarkets, hospitals, hotels and on-premise request. Lastly, they offer full service delivery for their dealers. Coca-Cola company work closely with the partnering bottling companies associated with them to achieve maintaining their supply and logistics operations at the most efficient cost possible. The biggest bottlers company in the world is the Coca-Cola Enterprises, a company that Coca-Cola Company controls thirty five percent of their shares. With this percentage of shares in the bottling companies, the company does not have the controlling say but sure has enough influence in policies. Their approach is taking computation and automation of their supply chain to ease management. The company’s chain of supply is optimized as a whole. That is, an efficient end-to-end methodology employed from creation to consumption. Value to their supply chain is added during the distribution phase. Here is where powdered products from the company are dispatched and made to final products. The processes involved before reaching the consumer include checking for correctness and quality, dispatching, distribution, fleet operations, planning and development, point of sale Clark and finally to the warehouses or supply stores where consumers find them readily available. Conclusion The world is evolving each day. To endeavor in the flourishing of the business in the subsequent 10 years and further, the company must foresee the future; comprehend the trends and forces that will shape the target market in the future and move quickly to get ready for what is coming. The company ought to get ready for the future today. This is what will make the company achieve its vision of 2020. This vision provides a longer-term purpose for its business and gives the roadmap for its triumph together with its bottler counterparts. The roadmap commences with the company’s mission, which is enduring and declares the corporation’s principle as a company and acts as the grounds against which the company weighs its deeds and judgments. Therefore, the company’s vision acts as a structure for the road map and directs each characteristic of the company’s trade by depicting the requirements to achieve in order to progress attaining sustainable, quality development. In the next few years the Coca cola Company will increase its sales tremendously because the brand is currently a house hold name globally. The company has profound roots and has established in almost all the areas in the world. The organizational structure employed, decentralizes all the activities from the Main branch to all the parts of the world through the distributors and suppliers. The idea of using a common formula in all the boy\ttling plants determines the company’s taste of the beverage or drink. Since it is a global and international company, Coca-Cola maintains the same flavor and taste universally because of the constant formulae in ingredients. The Coca-Cola structure is mutually a hybrid of organic structures and mechanistic. This balance is important, since it permits workers some leniencies but also provides the administration with a level of predictability. Bibliography Tung, R. L. (2001). Learning from World Class Companies. London, Thomson Learning. Kumar, P., (2010). Marketing of hospitality and tourism services, New Delhi: India, Tata McGraw Hill Education. Read More